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Several major economic development opportunities and jobs could come as a result of the overwhelming support the city of Phoenix received this week from voters for a fresh $500 million in general obligation funds.
All four of Phoenix's general obligation bond measures were seen as passing by a wide margin as of 6 p.m. on Nov. 8, according to unofficial election results posted by the city. The bonds were pitched to voters as instruments to support public safety, community services, arts, economic development and housing across Phoenix.
About $38 million of those funds will be designated for economic development and education opportunities in three key corridors in the city. It's the first GO Bond Phoenix residents have voted on since 2006.
"These are three of the most promising areas in the city of Phoenix, and having voter support to move forward will be catalytic," Mayor Kate Gallego told the Business Journal in an interview on Wednesday. "We believe a small amount of bond funding will catalyze significant private sector investment and support the work that the business community and residents are already doing."
Rio Salado riverfront
Activating riverfront development opportunities along the Rio Salado is one of the top priorities for the city's economic development GO bond funds. This will add to the federal funds dedicated to a larger plan to revitalize dozens of miles along the Salt and Gila Rivers.
Over five years, the city estimates it will use $23.5 million to acquire about 20 acres around the river and for predevelopment work that could help prepare the sites for development across a mix of uses.
This could result in an additional investment of up to $100 million from private companies, 350,000 square feet of new retail, restaurant, entertainment or hotel space — and hundreds of new jobs, city staff previously said in a presentation about using the bond for the land acquisitions.
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"Phoenix exists as a city because of our riverfront," Gallego said. "We hope to make some investments that will catalyze more private sector work along the riverfront to make it a more active live, work, play area."
Without the city leading development in the area the vacant sites could be turned into just industrial buildings, the city previously said. A new project could be similar to a proposed food innovation center that's currently under construction in south Phoenix along the Rio Salado.
Infrastructure to support ASU med school
Another $12 million in GO bonds will go toward infrastructure and public building improvements to support Arizona State University's multimillion-dollar proposed medical school in downtown Phoenix.
"It will focus on engineering and medicine so we can have the high technology training of the future," Gallego said. "Phoenix is already a leader in medical devices and wearable technology but this will help us go to the next level."
Gallego said the project could also help increase the number of doctors in the Phoenix community. Recently, a consortium led by Greater Phoenix Economic Council was awarded a federal grant to become a future technology hub focused on medical device manufacturing.
Development near Sky Harbor
The city has also earmarked about $2.5 million to acquire anywhere from 15 to 50 properties near the Phoenix Sky Harbor International Airport, also known as the "spark area." The city has been acquiring land in the area for 50 years for noise mitigation due to its proximity to the airport.
Phoenix is looking to buy small or large nearby parcels of land in order to build up larger assemblages of land for future development. The area is generally located east of 7th Street, west of 16th Street and south of Jefferson Street.
Potential private developments in the area could include new services, cultural centers and corridors, sports and entertainment centers, hotels, markets and food options or business incubators.
Phoenix City Council recently approved a development agreement with Exact Sciences Corp. to make way for a proposed 250,000-square-foot cancer-detection facility on 17 acres in the same area, just west of the airport.
Gallego said other community projects that will be funded through the GO bonds could also contribute to the growth of the city, including a new fire station in north Phoenix near Taiwan Semiconductor Manufacturing Co.'s growing facility.
In addition, the city plans to spend $60 million in GO bond funds on housing, human services and homelessness.
